Battery Applications: Opportunities and Developments in the European Market
Battery technology plays a crucial role across various sectors and is essential for the future of mobility, energy networks, and consumer products. This technology offers significant opportunities for the Dutch high-tech industry, especially in the fields of innovation and sustainable development. In this article, we discuss the main application areas of batteries and the opportunities they present for the Dutch industry.
Mobility as a Driving Force
Mobility is one of the key application areas for batteries and is expected to account for 88% of total battery demand by 2030. This includes a wide range of transport modes, such as electric passenger cars (EVs), trucks, bicycles, and scooters. The rise of electric vehicles continues, driven by both regulations and consumer demand for sustainable solutions. This creates opportunities to develop innovative battery technologies, advanced manufacturing processes, and the integration of batteries into vehicles.
In addition to passenger cars, there is growing interest in the electrification of heavy transport, such as long-haul trucks and last-mile delivery vehicles. Developing batteries suitable for these applications is challenging but offers significant growth and innovation potential. We see this trend in the Netherlands as well. With companies like VDL Bus, DAF Trucks, and Scania Volkswagen AG, the country holds a relevant position in the supply chain for heavy transport.
Maritime and Aviation Applications
Shipping and aviation also offer opportunities for battery technology. For maritime applications, such as ferries, inland vessels, and luxury yachts, batteries are already a viable option. However, current battery technology is not yet sufficient for larger aircraft, leaving room for further innovation and research. The Dutch high-tech industry can capitalize on this by collaborating with international partners to develop new solutions that serve these markets.
Stationary Storage and the Energy System
Batteries are playing an increasingly important role in the energy network, both in the short and long term. They not only help to reduce grid congestion but also to correct imbalances in the energy system caused by variable renewable energy sources. With the rise of bi-directional charging and the smart integration of batteries into the built environment, new opportunities are emerging for the Dutch industry.
The extent to which decentralized energy generation and storage (such as home batteries) will play a role depends on the growth of renewable energy in the grid. This creates a dynamic environment where demand for innovative battery solutions could rapidly increase. The predicted explosive growth of stationary applications offers the Dutch high-tech sector a unique opportunity to position itself as a leader in this market.
The market for Battery Energy Storage Systems has grown steadily over the past three years, and it is expected that long-term energy storage capacity will grow from 0.4 TW in 2030 to over 2.5 TW in 2040.
Hydrogen and Batteries: Complementary Technologies
In the energy transition, batteries are often compared to hydrogen as a means of chemical energy storage. While both technologies have their own advantages and disadvantages, it is clear that they can complement each other. Batteries offer higher energy efficiency, while hydrogen enables greater energy density and longer range, especially for heavy transport applications.
For the Dutch industry, there are opportunities to innovate in both battery and hydrogen technologies and to contribute to an integrated and sustainable energy system.
Conclusion
Batteries are essential for future developments in mobility, energy networks, and beyond. The Dutch high-tech industry has the potential to play a leading role in this growing market by focusing on innovation, collaboration, and sustainable solutions. Whether in mobility, stationary storage, or complementary technologies like hydrogen, the opportunities are abundant, and the outlook is positive.
Sources:
Holland High Tech; Battery Action Plan
PWC Strategy& (2021): "The business position and opportunities in the battery value chain for the Netherlands"
LDES Council (2021): "The Role of Long Duration Energy Storage in the Clean Energy Transition"